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FAQ: Factoring Accounts ReceivablesHow does factoring accounts receivables benefit my business?Bay View Funding's factoring accounts receivables program helps businesses increase cash flow while reducing credit and collections headaches. We can help you:
What is Bay View Funding looking for in a client?Above all else, we are looking to provide cash flow factoring to businesses with principled and hardworking owners and employees who deliver goods or services to creditworthy customers. You may be in hyper-growth mode or you may be unfairly regarded a credit risk by conventional lenders, but our concern is your existing invoices and the customers who owe you payment. Do I have to be an established business, operating a minimum number of years to be approved?No. Bay View Funding is happy to work with small to medium-size businesses that do not have long track records. We will even work with start-ups so long as they have commercial accounts receivable. Do you have any restrictions regarding the location of a client?No. Bay View Funding is a nationwide commercial finance company–we can provide cash flow factoring to businesses in all 50 states. How do we apply for factoring accounts receivables services?Just call the Bay View Funding office nearest to your location. You will be asked to complete and fax a signed application along with the additional information required. How do you establish your fees?Bay View Funding's fee structure is based on a combination of criteria:
How long will it take to receive my first funding?Once you have returned your completed factoring documents to Bay View Funding, it should take between two and five days to fund, depending on the quantity of invoices and customers provided for funding. After that, how quickly will we typically receive the funds?Bay View Funding usually funds all eligible invoices submitted on pre-approved customers within 24 hours of receipt. If the customer has not been pre-approved for purchase, we will try to fund those invoices as fast as possible, usually within 24 hours as well. Use our 24/7 on-line Client Center to submit credit requests. How do I receive my money from the factored accounts?Bay View Funding can wire or ACH funds to your account. Alternatively, we can send a check using an overnight service or via US Postal Service. Do I have to factor all of my invoices?No. Cash flow factoring is based on your needs—you can choose which invoices to factor. How long do I have to commit to factoring my invoices?No long-term commitments are required. Will Bay View Funding approve all of my customers for factoring?During the application process, we ask you to supply us with your customer list, complete with names and addresses. We perform credit approvals and establish credit limits on each one of your customers. By providing this valuable accounts receivable management service for your company, Bay View Funding will save you time and help you avoid slow paying or non-creditworthy customers. Who collects from my customer?Bay View Funding assumes this responsibility. Our courteous and professional staff is the best in the business, with an unparalleled commitment to maintaining excellent relationships with our clients’ customers. How do we know the status of the accounts we have factored?Customers access our database through a secure 24/7 on-line Client Center. You will be able to see current aging, cash applications, and just about anything else you might want to know about your factored accounts. What is the difference between factoring invoices on a “non-recourse” basis and a “with recourse” basis?When an invoice is factored on a “non-recourse” basis, the Factor takes the credit risk of the customer, thereby protecting the client from credit loss. When an invoice is factored “with recourse,” it means that the client is ultimately responsible for payment if the customer does not pay. Do you offer purchase order financing or financing for work in progress?No. Bay View Funding only provides cash flow factoring of invoices for goods and services that have been satisfactorily delivered and/or performed and billed in arrears. We may, however, be able to refer you to a financing source for work in progress or purchase order funding. What is the difference between a notification and non-notification program?The main difference is that with a non-notification program, your customers don’t know Bay View Funding is involved. In addition, we may or may not make collection calls to your customers. Learn More/Get Started
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